A meeting of the Federal Reserve Board was held in the office of

the Board on Tuesday, December 13, 1921, at 11:20 a.m.

PRESMIT: Governor HardingMr. PlattMr. HamlinMr. MillerMr. MitchellMr. Hoxton, Secretary.

Minutes of the meeting of the Board held December 8th were read

101:1 on motion approved.

The Governor reported the reserve positions of the several Feder-

reserve banks as at close of business December 7th and 10th, and the

status of re.discounts between the Federal reserve banks as of the same

8

The Governor reported rediscount transactions , menber bank pro-

Missory notes, secured by Government obligations, rate fe,-, as follows:

Date Bank redis-countintr

Dec • 9th Dallas

With

Boston

Amount Maturit ies

1,000,000 11-15 days

Letter dated December 12th, from the Governor of the Federal Re-

Bank of Richmond, suggesting that that Bank invest S'75,000 in Gov-

etninent securities, with a view to using the income to pay premiums upon

illsurance upon the building. Also, requesting authority to set aside

.°100 ,000 as a reserve against possible losses in the loan account of the

134,13k.

No action, it being determined to defer replyuntil the Board has been. apprised of the intentionsof other Federal reserve banks with reference to mak-ing requests for authority to set up reserves againstpossible losses.

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Letter dated December 10th, from the Secretary of -far, vising

that the United States rirev ernment is c ont enplat i21P; making examination of

the banking situation in the 7hillipine Is1nds, and. sumesting that the

Federal Reserve Bank of .F.evr York be designated as a depositary of the

funds of the 'hillipine qovernment; also, inquiring if the Flederal 'Reserve

13atik of Hew York would pay curreat market interest rates on the deposits

Of tix) Alillipine Government.

41

4:21k

Letter dated December 6th, from the Governor of the Federal Reserve

of Cleveland, submittinJ-7 schedule of proposed salary adjustments among i$111

tlithe officers and employes of that Bank. -411

Upon raption, the letter was referred to I.Tessrs.Platt, I.:11 ler a.rx1 1:itchell, said members being desig-nated. as a special committee to consider applicat ionslikely to be nude at the end of this year for anto adjust salaries and make charges against profit andloss.

of

The Governor wL, s reve sted to advise the Secretaryof "viar that there is no objection to the desiglation ofthe Federal Reserve Bank of Hew York as a depositary forthe funds of the 2hilli pine Gov ernment , with advice thatno Federal reserve bank can pay any interest upon anydeposits.

Letter dated December 8th, from the Chairman of the Federal Reserve

Dallas, requesting authority to declare the usual dividend, as of1)ecerrber 31st, and authority to set up a reserve aminst possible losses,441 authority to charge off as depreciation 2T of the cost of the bankbilildings at Dallas and Houston.

Upon motion, the oa;y-Irent of the dividend was autilor--ized, and. the other matters were referred. to t'le Committeeon Salaries and. Charge Offs.

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letters d:-_,ted December 7th, from the Chairman of the Federal

Reserve Bank of San Francisco, requesting authority to make certain charges

aM.inst T)rofit and. loss.

Referred to the Committee on Salaries and Cirrge Offs.

Letter dated December 6th, from the Chairman of the Federal Reserve

Bank of San Lrancisco, with reference to the policy of the Bank of Italy,

San ,erarcisco, in the matter of establishing branches.

After full discussion, the nr tter was OrClered.referred to qenral Counsel.

Letter dated December 8th, from the Chairman of the Federal Re-

serve Bank of San Francisco, requesting for that Bank the authority of the

Federal Reserve Board to purchase rinited States certificates of indebted-

ness or Victory Notes, in sufficient amount to insure dividends•

The Governer was authorized to telegraph Mr. Perrinthat the Federal Reserve Board interposes no objection tothe purchase by the Federal Reserve Bank of San Frrnci scoof such U.S. certificates of indebtedness or Victory :votes.

Letter dated December 17th, from the Deputy Governor of the Fed-

Reserve Bark of Richmond, requesting the Board to rule in the case

" a disacTeement between the Federal Reserve Bank of 'lichrnond and theTi‘p,„1

'LLeral Reserve Bank of IJew York as to the eligibility for discount by

'er-c.1.1 reserve banks of L]aper of a certain sugar commission company,

414 Submitting for the Board's consideration a financial statement of the4.1d. Company*

The matter submitted by Deputy Governor ?eplewas discussed, but no action taken.

Lii

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The Governor stated that he had received a telephone communica-

tion from the Deputy Governor of the Federal Reserve Bark of 1Tetv York,

Mr. Case, inquiring if the Board would have objection should the examin-

ers of the Federal Reserve Bark of Ni York share with the examiners of

the State of Now York in an examination of the International Acceptance

Bark of New York.

It was, upon motion, voted that the Board hasno object ion to such joint examination.

At 1:10 p.m. a recess was taken until 2:30 p.m.

In accordance with the terms of adjournment, the Board reassembled

at 2:30 , Mr. Crissinger being present, in addition to those who were

Present at the morning session.

The Governor reported to the Board the arrangements which he had

Made with reference to securing additional srace in the Rapley Building,

48 previously authorized by tip Board, and suggested, in order to provide

811tficient space for the Board's force, that the lease upon the quarters

the National Metropolitan Bank Building be surrendered only as to a

Part thereof.

The Governor's arrangement and suggestion wereconcurred in by the Board.

Memorarrium dated. December 10th, from the Board's Statistician,

l'ecommend.ing the discontinuance of the collection by the Federal Reserve

14/ard of statistics covering gold and silver imports and exports, in view

c't the fact that these statistics are collected ani published by the Do-

of Commerce.

Approved.

tj

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Memoianium dated December 8th, from the Assistant Counsel, re-

commending that the Federal Reserve Board require all Acting Assistant

?edema Reserve Agents to execute original bonds in the same form and

elnount as is required of Assistant Federal Reserve Agents.

Appioved.

Memorandum dated December 9th, from the Assistant Counsel, submit-

ting a revised form of the applicat ion required to be filled out by nation-

al banks for stock in their resictive Federal reserve banks.

Approved.

Letter dated November 29th, from the Secretary of the Board of

Directors of the Federal Rese rve Bank of Minneapolis, traisrnitting, for

the approval of the Federal Reserve Board, a resolution of the Board of

Dir ect ors of that Bank, providing for a payment of a dividend for the six

rncriths period ending December 31, 1921,' at the rate of 6% per annum, on

the paid. in capital stock, payable on the 31st day of December, 1921.

Approved.

Letter dated December 8th, from the Secretary of the Board of Di-

rectors of the Federal Reserve Bank of Cleveland, transmitting for the

laPProval of the Federal Reserve Board, a resolution of the Board of Di-

rectors of that Bank providing for the payment of a dividend for the six

Incnthe period ending December 31, 1921, at the rate of 6% per annum, on

the paid in capital stock, said dividend payable on the 31st day of

i)ecernber, 1921.

Approved.

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Letter dated December 8th, from the Chai =an of the Federal Reserve

Bank of Philadelphia, transmitting, for the approval of the Federal Reserve

Board., a resolution of the Board of Directors of that Bank, authorizing the

PaYrient of a dividend for the period ending December 31, 1921, at the rate

°r 6% per annum, payable on the 31st day of December, 1921.

Approved.

Letter dated December 9th, from the Railway Loan Advisory Commit-

Of the Federal Reserve Board, recomrrerding approval of the form of

Obligation sitmitted by the Seaboard Air Line Railway CoMpa,ny for a loan

1,451,500, in five parts, the carrier electing to take over at this

time the fifth part of the loan in the amount of 139,500, under the pro-

.tisions of Section 210 of the Transportation'Act, 1920, as amended.

Forrnal ly approved; hay ine; previously been a ppro vedby the initials of mombers of the Beard.

Letter dated December 10th, from the Railway L0211 Advisory Commit-

tee of the Federal Reserve Board, recommending approval of the form of

6bligat ion submitted by the Alabama, Tennessee and Northern Railroad Oorpor-

fellohl for a loan of :7;399,000, und.er the provisions of Section 210 of the

lyikrisportation Act, 1920, as amended.

Formally approved; having previously been approvedby the initials of members of the Board.

Letter dated December 7th, from the Governor of the Federal Reservetaw..-4.4- of Boston, with regard to certain charge offs contemplated by that

I 41k covering building and equipment depreciation.

Referred to the Governor for reply.

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Letter dated -Decerrber 1st, from the Chairman of the 7edera1 Re-

serve Rank of jan Yrarrisco, sucrgesting a modification in the Federal Re-

serve Board's condition of membership imposed upon state bank applicants.

It was th,. sense of the meeting that rr. 7errin'sproposed modification of the condition referred tov:ould not be feasible for use generally by the Board,althouoja it might be applicable to state banks whichapply for mo-bership from the State of Califernia.

Lett' dated December 9th, from the Chairman of the Federal Re-

serve Bank of 1Tew York, advising that the Board of Directors of that Bank

}lad, subject to the appro .val of the Federal Reserve Board, determined to

Permanently employ 'Cr. ..t.'ranc is Oakey, and to drop from his title the word

"Acting".

Referred to t he Connittee on Salaries and ChargeOffs.

Letter dated December 7th, from the Director of the Division of

4th.alysis and Research. requesting approval of the appointment of an employe

at salary of 1600 per annum, to take the place of another. employe, res gn-ea ,

Apir o ved.

Letter dated December 7th, from the Chairman of the Federal Reserve

13ank of Philadelphia, inquirin,,, if the Board will approve the purchasing1)\7

that Bank of U.S. certificates of indebtedness and Victory rotes. in

'?iew Of the decline in volume of that Bank's discount and loan account.

It was the sense of the meeting tint the Board willinterpose no objection to such purchases in an amount notgreater than 20,000,000, aid the rrovernor was requestedto make reply to :.7 r. Austin.

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Telegram dated December 9th, from the Chairman of the Federal Re-

serve Bank of Richmond, advising that the Board of Directors of that Bank

had., subject to the review and determination of the Federal Reserve Board,

fixed the discount rate at that Bank on all classes and, all maturities of

Paper at 5, effective at once.

Formally approved; having previously been approvedby the initials of five members of the Board..

Letter dated December 8th, from the Chairman of the Federal Reserve

Bazik of Atlanta, advising of the promotion and salary increase of one

etnploye and the temporary transfers of two employes.

Approved.

Tlemorandum dated December 9th, from Mx. Jacobson, the Statistician

Of the Board, recommending that the Associate Statistician be authorized.

to attend the meetings of the Arivrican Economic Association and the Amer-

Statistical Association, to be held in Pittsburgh, Pa. on December

27th to 30th, said attendance to be in an official capacity and at the ex-

lerlse of the Federal Reserve Board.

Approved. Upon motion, the Secretary was instructedto advise Mr. Jacobson, the Statistician, that the Board.also approves his awn attendance upon the meetings referredto, said atteniarre to be also in an official capacity andat the expense of the Federal Reserve Board, provided. Mr.Jacob son desires to attend.

1.!emoranium dated December 12th, from the General Counsel, request-

that the Board authorize an expenditure of if375.00 fbr the Corporation

TrUst Company's service during the special session of the 67th Coness,

covering legislation relative to banking and currency.

Appro ved.

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Letter dated December 7th, from the Deputy Comptroller of the

Currency, submitting to the Poard list of the changes made in the rational

13ank Exe.minino; force durin.c month of 7ovember, 1921.

7.oted.

1121)011TS OF COITITTZE NO. 1:

Dated December 13th, Recomrrenlinp; charges in stock at Federal eserve Banksas set forth in the auxiliary minute book as of thisdat e.

Approved.

At 4:15 p.m. the meetim adjourned.

Secretary.

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